That's a pretty good reduction in interest rate, so it may well make sense to do this refi.

Keep in mind, the months that things are good will make it feel like your property manager is simply an "insurance policy" (meaning barely any issues to take care of, but PM is there to take care of whatever comes up) while other months PMs are worth our weight in gold (things break, tenants need things, some sort of maintenance needs to be scheduled / etc.).Good luck on your acquisition!

Why wouldn't they take financed money since its all the same to them.What is the reasoning behind the constant small price reductions or is it exactly what I assumed above.Thanks!

Hi BP,I work at a law firm and specializes in helping property owners to get real estate tax reductions. 

They must place a higher weight on Price Growth or Dallas would have been ranked number 1.

I get plenty of other advantages other than cash flow.You have several ways of making money in RE.1) Cash Flow2) Mortgage Balance Reduction3) Appreciation and4) Tax Deductions5) Leverage your EquityWhile you don't have 1) Cash Flow, the others will help out over time.You WILL get 2) Mortgage Balance Reduction if you locked in a 15 year fixed rate mortgageYou MAY get 3) Appreciation, but that's not guaranteed, however, you don't need to depend on this since the Mortgage Balance Reduction could be significant.You are PROBABLY going to get 4) Tax Deductions as you will wind up getting Depreciation added as it converts to a rental property.

Profit comes from principal reduction, appreciation, cash flow, and tax benefits and many investors use IRR (or other metrics) to calculate their rate of return.Lastly, many investors add value with rehab and/or improving NOI and drive the IRR way up. 

We don't know exactly what the final version of the tax bill will look like, but it will still need increased revenue to pay for the corporate tax rate reductions. 

Are you actually performing damage reduction in this case?

If I chose this route I could would be getting a cash flowing property as well a see monthly bill reduction around 640 a month from payoff of my 401k loan and lower primary mortgage.